Analysis of successful rate factors for small and medium enterprises in furniture manufacturing sector in Klaten Regency - Central Java, Indonesia

Abstract

Small and Medium Enterprises (SMEs) are business activities that can expand the level of employment rate and provide economic services to the wider community and can play a role in the process of equalizing and improving people’s income, stimulating economic growth as well as realizing national stabilities. The aim of this study is to identify the factors of the success rate for Small and Medium Enterprises (SMEs) in furniture manufacturing sector in Klaten regency, Central Java, Indonesia. The method employed in this study was descriptive qualitative by also employing quantitative analysis of which the data were collected through observations, interviews and by administering questionnaires. The results seemed to indicate that the furniture business in Klaten is still experiencing difficulties in managing its various aspects of business, namely in terms of marketing (either directly or indirectly or by making the best use media of technology) and managing capital. All this time, the SMEs in furniture manufacturing sector in Klaten have been utilizing a very simple system in producing tables, chairs, wardrobes and any other furniture products which are then distributed to be sold by larger furniture companies. This condition makes the SMEs unable to be independent in running their business.